Buyers in prime districts spoilt for choice
By Timothy Tay
/ EdgeProp |
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In the prime districts, on the heels of launched projects such as 8 Saint Thomas (250 units) and 3 Cuscaden (96 units), projects expected to be launched next year include the redevelopment of en bloc project Tulip Garden (672 units), as well as new developments on the Handy Road and Jiak Kim Street government land tender sites, according to a report by Edmund Tie & Co on Nov 28.
“Next year will certainly be very interesting for high-end buyers looking for properties in the Core Central Region,” says Samuel Eyo, managing director of Lighthouse Property Consultants. Developers are likely to bank on their strong product mix, as well as pricing and marketing strategies, to position and differentiate their developments, he says.
At 8 Saint Thomas, located off River Valley Road, new units have been snapped up for more than $3,000 psf. In the most recent sale at the freehold condo, a 1,302 sq ft, three-bedroom unit changed hands for $4.08 million ($3,133 psf) on Nov 14. Prices at the 250-unit luxury condo have ranged from $2,936 to $3,545 psf since the development was launched in August.
8 Saint Thomas is by Bukit Sembawang Estates (Picture: Bukit Sembawang Estates)
As the number of existing potential buyers looking for properties in the CCR diminishes, demand for new projects in the area next year may come from new foreign buyers, especially those entering the Singapore luxury market for the first time, says Eyo. Global macroeconomic headwinds — from Brexit uncertainties and rising interest rates to more stringent capital controls in China — are encouraging investors to look for safe havens such as Singapore in which to reinvest their capital, he says. “There are still many groups of foreign buyers who are willing to invest in Singapore, as we are still an attractive investment location.”
Even in the secondary market, some resale luxury units were recently sold for more than $3,000 psf. A three-bedroom unit at The Orchard Residences, in the heart of Orchard Road, fetched $7.75 million ($3,144 psf) on Nov 19. The 2,465 sq ft unit is on the 33rd floor of the 56-storey residential tower, the residential component of the ION Orchard integrated mall. According to URA caveats, this is only the second unit at the 99-year leasehold development that has been sold so far this year. In February, a 2,174 sq ft unit on the 43rd floor changed hands for $8.1 million ($3,731 psf).
A three-bedroom unit at The Orchard Residences fetched $7.75 million ($3,144 psf) on Nov 19 (Picture: Samuel Isaac Chua/The Edge Singapore)
Meanwhile, a four-bedroom unit at Bishopsgate Residences was sold for $8.5 million ($3,295 psf) on Nov 19. The 2,583 sq ft unit is on the fourth floor of one of the three residential blocks. In July, a 2,939 sq ft unit at the freehold condo was sold for $11.5 million ($3,913 psf), making it the most expensive resale unit sold in the last quarter, according to a report by OrangeTee & Tie. Located on Bishopsgate near Grange Road, the boutique luxury condo was completed in 2012.
Some buyers may not be actively seeking out properties to invest in next year and will instead start looking for opportunities to capitalise on their new property investments this year, says Eyo. They could do so by renting out their property or selling it for a profit. A few are also looking to diversify and invest in shophouses and other non-residential property assets, he adds.
Luxury, prime district condos such as Bishopsgate Residences are commanding more than $3,000 psf on the resale market (Picture: Samuel Isaac Chua/The Edge Singapore)
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